Algorand (ALGO)It may be the first time that it is starting an uptrend since its January drop, as ALGO has managed to bounce off the $0.80 and monthly S2 support level. Since then, ALGO price action has been trading sideways, the bottom upside has been tested twice in the past few days, and the bottom continues to form a ‘bullish triangle’ that has been tested for resistance twice in a row at $1.10.
Algorand bulls seemed a little nervous this morning, but overall they continued the day in a relaxed position. With the global breakdown in financial markets ALGO price It broke out of the bullish triangle formed since the end of January. But meanwhile, the bulls caught the drop and made a false breakout, squeezing some bears in the process.
ALGO price offers the bulls two scenarios to allow this triangle to happen:
The first is slow and the triangle’s completion towards the end of next week is a squeeze against the $1.10 baseline and then a rally towards $1.20. The second is a NASDAQ-backed process that will be completed faster once global indices turn green again. Whatever the scenario, the price target is set at $1.20 and the monthly pivot is just a few clicks away from January’s S1 support, making it a vital zone for resistance.
With the false breakout this morning, the oblique side of the triangle seems to have lost some prominence and support already. It may be worth waiting for another pressure from the bears at this level to adjust the chart for a solid break out of the triangle. The loss could result in a 15% drop to $0.80 in line with the start of the triangle and the S2 support in January.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.